Fair Trade Law Q&A - False or Misleading AdvertisingFair Trade Law Q&A - False or Misleading Advertising| Does an endorser's administrative liability for false advertising depend on whether he or she has received compensation or remuneration from the advertiser? |
Under Article 21 of the Fair Trade Act, whether an advertisement is false or misleading is determined by whether the content is likely to cause trading counterparts to form mistaken perceptions or make erroneous trading decisions. Therefore, even if an endorser has not received any monetary compensation or product sponsorship from the advertiser, this does not preclude the possibility that he or she may still bear administrative liability for false advertising under Article 21 of the Fair Trade Act.
Relevant provision: Article 21 of the Fair Trade Act